Empirical Research Study Of The Relationship Between Internal Governance And Financial Competitiveness Of China’s Listed Companies

Since its accession to the WTO, China’s economic has achieved rapid development,the increasingly fierce market competition, the globalization trend is increasingly evident.Sound corporate governance is the core of the modern enterprise system, is a necessarycondition to enhance the financial competitiveness. However, from the evidencecollected, the internal corporate governance and corporate financial competitiveness areoften conducted separately. How reasonable arrangements for the company’s internalgovernance structure, to alleviate the principal-agent problem, improve the financialcompetitiveness of China’s listed companies, is the purpose of this study. In this paper,the theoretical research and empirical research on the relationship between the internalgovernance of listed companies in China Company with corporate financialcompetitiveness are analyzed and discussed.Firstly Review of internal corporate governance, corporate finance competitivenessat home and abroad, then the concept of corporate financial competitiveness defined,followed by explaining its characteristics characteristics, and corporate financialcompetitiveness evaluation index system is divided into the debt service capacity,profitability, operational capabilities, and the ability to grow four dimensions.In this paper, a listed company on the Main Board of the CSI four years2007-2010data as the study sample, descriptive statistics, correlation analysis and regressionanalysis method to studA the correlation of internal corporate governance and financialcompetitiveness. The study finds that:(1) the largest shareholder stake and corporatefinancial competitiveness negatively correlated.(1) Chairman and Managing setcondition and business financial competitiveness, there is a positive correlation.(3) thereis a positive correlation between the stake of the Board of Directors and corporatefinancial competitiveness relationship.(4) the number of meetings of the Board ofSupervisors and the corporate financial competitiveness between the eBistence of asignificant positive correlation between.(5) executive pay executives stake there is apositive impact for the company’s financial competitiveness. The results of these studies have certain reference significance to improve China’s listing Corporation internalgovernance structure, to improve the competitiveness of corporate finance.